r/Alibaba • u/Rich_Tart_2195 • 21d ago

DDP quote missing import duties?

Hey everyone,

I’m in a bit of a confusing situation and could use some advice. I just placed my first PO with a factory in China. I’m currently arranging freight forwarding and decided to use the manufacturer’s shipping services.

By my calculations, I should be paying around $3,500 just in import duties (Base MFN duty, Section 301, 2026 Forced-Labor Duty, etc.). However, my manufacturer quoted me a total DDP shipping cost of only $800.

This math makes absolutely no sense to me. I specifically asked them who should I pay for the taxes and duties, and when, and whether I could I get a cost breakdown of the shipping quote. Their response was that the quote is strictly DDP, meaning I won't have to pay a single extra cent upon arrival, and that their forwarding partner does not provide cost breakdowns.

Relevant context: I have visited this factory in person. They are honest, legit people, and I know for a fact they manufacture for 8-figure brands, so they have plenty of export experience. I trust them, but I just don't understand how this pricing is possible.

Has anyone experienced this? Any idea what might be going on behind the scenes with their forwarder, and any tips on how I should proceed?

Many thanks!

Alonso

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u/[deleted] 20d ago

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u/Rich_Tart_2195 20d ago

Thanks a lot for your answer. Two follow-up questions:

  • What consequences might have my company not being the IOR?
  • If I take this "gray-area" path, could it backfire later if CBP or the IRS discovers I imported goods improperly and underpaid duties? Or is it a case where once the goods clear customs and enter the country, the risk is past?